Hawaii is just like its mainland counterparts when it comes to lien laws- filing can be both complex and expensive. Here, a project in Hawaii says aloha to mechanics liens to the tune of nearly $10M.
The Project
In Waikiki, Hawaii, a $465M project is underway to redevelop Waikiki’s International Market Place. The three story, 360,000 square foot facility will feature an open air design and will be home to over 75 businesses in retail, dining, and entertainment.
The project is anchored by a historic banyan tree that has been a part of the community for over 100 years. Preservation of the tree is among the highest priorities of the project, and the ultimate goal is to attract both residents and those visiting the area with a balance of local culture and modern appeal. During the project lien claims have been filed by two groups working on the facility. With the grand opening set for August, the clock is ticking.
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The Liens
The first lien filed on this project came in May of 2015 from Hayward Baker, Inc. to the tune of $8.8M. The Maryland based firm claimed that it did not receive payment for the foundational work it performed subject to its subcontract signed in February of 2014. The general contractor for the project is dck pacific construction. The landowner, Queen Emma Land Co., and the developer, Taubman Properties, were both named in the action as well. The lien has not been enforced and there has been no litigation.
The second group exercising their lien rights is the Hawaii Carpenters Trust Funds. In May 2016, the Carpenters Trust Funds filed a lien claiming they stopped receiving payments from Taubman Properties in December 2015 and that they are owed over $750,000 in unpaid wages and benefits.
Where Do They Go From Here?
In Hawaii, the process for attaching a lien is a little atypical. Once a lien is attached, a lienor has three months from the date to enforce it. After three months, the lien expires and a lienor loses their right to a lien on the property.
For Hayward Baker, three months have already passed from the date the lien was filed. It appears no further action was taken on the lien, so they either received the unpaid sum, released their lien, or let it expire.
The Hawaii Carpenters Trust Funds just recently filed in May, so they still have time to enforce their lien. With the Waikiki International Market Place set to open August, it is likely that the parties will settle the issue before it interferes with the opening.
No matter where you are, mechanics liens can get costly and complex in a hurry. This rings especially true in Hawaii due to the state’s unique filing process and hefty filing fee. For more information on your lien rights in the Aloha State, refer to our Hawaii Mechanics Lien FAQ and our other materials on Hawaiian Lien Law.
